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The Division is considering recommending that the Commission adopt rules under the Securities Exchange Act of 1934 to help improve the governance of clearing agencies registered with the Commission by reducing the likelihood that conflicts of interest may influence the board of directors or equivalent governing body of a registered clearing agency. The Commission proposed rules that would identify certain responsibilities of the board, increase transparency into board governance, and, more generally, improve the alignment of incentives among owners and participants of a registered clearing agency. In support of these objectives, the proposed rules would establish new requirements for board and committee composition, independent directors, management of conflicts of interest, and board oversight.

Overall Description of Deadline: Pub. L. 111-203, sec. 765. The Dodd-Frank Act requires the Commission to adopt rules to mitigate conflicts of interest for security-based swap clearing agencies, security-based swap execution facilities, and security-based swap exchanges.